Asset Breakdown
395 M
Assets Non Current
319.3 M
Goodwill
195.2 M
Current Assets
| Total Assets | 542.44 Million | |
| Current Assets | 195.19 Million | |
| Assets Non Current | 395 Million | |
| Goodwill | 319.35 Million | |
| Tax Assets | 727,863 |
Continue to hold AngioDynamics (USA Stocks:ANGO) based on its current debt obligations?
 | By Vlad Skutelnik | Macroaxis Story |
AngioDynamics currently holds $49.82 million in liabilities, with a Debt to Equity (D/E) ratio of 0.14. This suggests that AngioDynamics may not be leveraging borrowing to its full potential. The company's current ratio stands at 2.23, indicating that it is sufficiently liquid and capable of meeting its financial obligations as they come due.
While debt can be beneficial for AngioDynamics until it encounters difficulties in repayment, either through new capital or free cash flow, there is a risk that shareholders could end up with nothing if the company fails to meet its legal debt repayment obligations.
However, a more common scenario is for companies like AngioDynamics to issue additional shares at discounted prices, which dilutes the value for existing shareholders. In such cases, debt can be a superior tool for AngioDynamics to invest in growth at high rates of return.
When evaluating AngioDynamics' use of debt, it is crucial to consider it in conjunction with cash and equity.
Main Points
AngioDynamics (ANGO) has demonstrated a commendable approach to debt management, making it a viable investment option for those seeking to leverage their portfolio. Despite a reported operating income loss of $19.2 million, the company has managed to maintain a robust total assets value of $532.6 million. This indicates a strong financial foundation, which is further reinforced by the company's other stockholder equity standing at a substantial $593.5 million. The company's ability to manage its debt effectively, even amidst challenging financial circumstances, underscores its resilience and potential for future growth. Therefore, investors are advised to maintain their position in AngioDynamics, leveraging its favorable debt management as a strategic advantage.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Gabriel Shpitalnik
Every cloud has a silver lining, and this is certainly true for AngioDynamics, a healthcare company that trades on the NASDAQ under the ticker ANGO. Despite reporting a loss of $52.4M from continuing operations and a loss before tax of $54.4M, the company has demonstrated favorable debt management. AngioDynamics has a net tangible assets of $378.3M, which includes property, plant, and equipment worth $44.4M, and intangible assets of $111.1M. This, coupled with a goodwill of $159.2M, indicates a strong asset base that outweighs its liabilities, including $43.4M in other current liabilities. Furthermore, the company's investing activities, which have led to a cash outflow of $9.7M, are aimed at strengthening its position in the healthcare equipment and supplies sector. With an estimated target price of $20, the potential upside is significant. Therefore, maintaining your position in AngioDynamics could prove to be a wise move. AngioDynamics is set to release its earnings report today, with the subsequent financial report anticipated on April 4, 2024. Currently, AngioDynamics' Working Capital demonstrates notable stability compared to the previous year. As of January 5, 2024, the Long Term Debt to Equity ratio is projected to increase to 0.17, while the Net Income Per Employee is expected to decrease to $75.9K.
Given that many millennials are steering clear of the healthcare equipment and supplies sector, it is prudent to delve deeper into AngioDynamics and comprehend its prevailing market trends. I will discuss several potential reasons why insiders may not currently hold this stock in high regard.AngioDynamics financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of AngioDynamics, including all of AngioDynamics's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of AngioDynamics assets, the company is considered highly leveraged. Understanding the composition and structure of overall AngioDynamics debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding AngioDynamics Total Debt
AngioDynamics liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. AngioDynamics has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on AngioDynamics balance sheet include debt obligations and money owed to different AngioDynamics vendors, workers, and loan providers. Below is the chart of AngioDynamics main long-term debt accounts currently reported on its balance sheet. You can use AngioDynamics financial leverage analysis tool to get a better grip on understanding its financial positionHow important is AngioDynamics's Liquidity
AngioDynamics financial leverage refers to using borrowed capital as a funding source to finance AngioDynamics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. AngioDynamics financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to AngioDynamics' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of AngioDynamics' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between AngioDynamics's total debt and its cash.
What is driving AngioDynamics Investor Appetite?
The entity reported the previous year's revenue of 338.75 M. Net Loss for the year was (52.44 M) with profit before overhead, payroll, taxes, and interest of 174.25 M.
Every cloud has a silver lining, and for AngioDynamics (ANGO), that silver lining is its favorable debt management. Despite a net income loss of $52.4M, the healthcare company maintains a strong position with a current ratio of 2.28X, indicating a healthy ability to cover its short-term liabilities. The company's total liabilities stand at $154.3M, significantly lower than its net assets of $532.64M, further demonstrating its robust financial health.Moreover, AngioDynamics' short and long-term debt totals $49.8M, a manageable figure given its net tangible assets of $378.3M. The company's net debt is a mere $5.2M, further underscoring its effective debt management. With 92.11% of shares owned by institutions, investor confidence in AngioDynamics remains high. Therefore, maintaining your position in ANGO could be a prudent move amidst the company's favorable debt management. .
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of AngioDynamics. Please refer to our Terms of Use for any information regarding our disclosure principles.